The International Monetary Fund said on the 1st that although the recent sharp rise in yields has pushed global borrowing costs to their highest level in decades, global bond markets continue to function in an orderly manner. The U.S. 10-year Treasury yield, a benchmark for global interest rates and asset prices, rose as high as 5.34% on the 1st, its highest level since 2002. The increase in the July-September quarter was also the largest for any quarter this century, and the selling pressure has spread from France and the United Kingdom in Europe to Japan in Asia and other major markets. IMF spokesperson Julie Kozack told a press conference that "looking at the world as a whole, bond markets continue to function in an orderly manner," while noting that energy prices remain a challenge for the global economy, explaining that prices for diesel, gasoline and jet fuel have risen 60% to 97% compared with before the conflict, reflecting the impact of the war with Iran and constraints on global oil refining capacity. Kozack said the energy shock, which is one factor pushing up headline inflation, is not over yet.
US 10-year Treasury yield rose as high as 5.34%, its highest since 2002, with the largest quarterly increase this century, reflecting the sharp rise in yields.
